Economic Indicators

state of the region economic indicators page

To enhance the Detroit Regional Chamber’s robust Data and Research portfolio that includes the annual State of the Region, the State of Education and Talent, and Michigan is Automobility, the Chamber also provides timely updates on key economic metrics throughout the year with the Monthly Economic Indicator and quarterly Economic Indicator Update.

Together, these updates offer a holistic view of the Detroit Region’s challenges and successes in areas such as business growth, employment, innovation, and consumer trends, to help leaders make strategic decisions in a changing economic environment.

 

Expand for Monthly Economic Indicator Data

U.S. Real Gross Domestic Product

The U.S. GDP Shrank in First Quarter in 2025

U.S. gross domestic product, adjusted for inflation, declined at an 0.3 percent annual rate in the first three months of the year.  Inventories, spending and investments were solid, however growth was slowed by a surge in imports as companies moved goods in advance of potential tariffs.

Chamber Perspective

Chamber Perspective Economic Indicators

Overall current economic indicators highlight an economic slowdown in the first quarter of 2025. Michigan’s and the Detroit Region’s unemployment rates have increased for seven consecutive months, with the statewide unemployment rate reaching 5.5% in March 2025, 1.3 percentage points above the national rate (4.2%). Furthermore, steep declines in confidence from consumers and business leaders were also seen in the first quarter with consumer sentiment falling to the second-lowest level on record, reflect rising anxiety about the economic outlook due to uncertainty around trade policies.

Additionally, the Federal Reserve Bank of Atlanta expects for the U.S. GDP growth to slow in the first quarter of 2025 after remaining strong through the end of 2024. An increase in economic uncertainty and projected decrease in government spending have lowered growth expectations.

 


U.S. Manufacturing PMI®

registered at 48.7% in April.

U.S. Manufacturing PMI®

Detroit MSA Unemployment Rate

increased to 5.4% in March 2025, 1.1 points above the national rate.

Detroit MSA Unemployment Rate

Consumer Price Index

rose to an annual rate of 2.4% in March 2025.

Consumer Price Index

Michigan and US Indicators

Monthly Unemployment Rate

Detroit Region’s Unemployment Rate Rose for the Seventh Consecutive Month

Detroit Region’s March 2025 monthly unemployment rate increased to 5.3%, falling 1.1 percentage points below the national rate of 4.2%.



U.S. Real Gross Domestic Product

The U.S. GDP Shrank in First Quarter in 2025

U.S. gross domestic product, adjusted for inflation, declined at an 0.3 percent annual rate in the first three months of the year.  Inventories, spending and investments were solid, however growth was slowed by a surge in imports as companies moved goods in advance of potential tariffs. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Consumer Price Index

Inflation Eased in March 2025

In March, the Consumer Price Index for All Urban Consumers fell 0.1 percent, seasonally adjusted, and rose 2.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.1 percent in March (SA); up 2.8 percent over the year (NSA). Read the full report.

 

Consumer Sentiment

Consumer Sentiment Falls in April 2025

The University of Michigan Surveys of Consumers, consumer sentiment registered at 52.2 in April 2025. According to Surveys of Consumers director, Joanne Hsu, consumer sentiment fell for the fourth straight month, plummeting 8% this month.  Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead. Labor market expectations remained bleak. Even more concerning for the path of the economy, consumers anticipated weaker income growth for themselves in the year ahead. Without reliably strong incomes, spending is unlikely to remain strong amid the numerous warnings signs perceived by consumers. Read the full report. 

Labor Force Participation Rate

Michigan’s Labor Force Participation Unchanged In February

The February statewide labor force participation rate was unchanged over the month at 62%. Michigan’s employment-population ratio also remained unchanged at 58.7% during February.

New Business Applications

Michigan’s New Business Applications Slow in 2024 But Above Pre-Pandemic Levels

New business applications have dropped by 9% in 2024 compared to 2023 but are still well above the pre-pandemic levels. The tightening of the credit market is most likely attributing to the continued slowing of applications in 2024.

U.S. Manufacturing PMI®

Manufacturing Sector Contracted in March After Two Consecutive Months of Expansion

The Manufacturing PMI® registered at 49.0% in March, 1.3 percentage point lower compared to the 50.3 percent reported in February according to the Institute for Supply Management® (ISM®).  According to Timothy Fiore, Chair of the Institute for Supply Management Manufacturing®, in March, the Manufacturing PMI® reversed its recent momentum to register below its reading in December. Of the five sub indexes that directly factor into the Manufacturing PMI®, two (Supplier Deliveries and Inventories) were in expansion territory, the same number as in February, when Production and Supplier Deliveries indicated growth. Slower supplier deliveries and expanded inventories in March are not considered positives for the economy: Both conditions figure to be temporary and are driven by tariff concerns, either delaying buyer/seller negotiations or advancing material deliveries that will be reversed after tariffs are deployed, leading to a drawdown of manufacturing inventory. 

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.

Detroit Metropolitan Airport Total Passengers

Passenger Traffic Dips in February 2025

DTW passenger traffic totaled 2.2 million passengers in February 2025, down almost 5% in volume compared to the previous year. Cargo is also down 7% compared to February 2024.

Automotive Economic Indicators

Annual U.S. Light Vehicle Sales (SAAR)

New-Vehicle Sales Pace (SAAR) Increased In March 2025

SAAR increased 10.97% from the previous month.  Industry experts point to the impact of tariffs and fears of price hikes driving consumers to purchase vehicles at an increased rate in March 2025.

 

 

Monthly U.S. Light Vehicle Sales

Vehicle Sales Increased to 1.6M in March 2025

Monthly vehicle sales increased 10.1% in March. This percentage change represents 367,671 additional vehicles sold.

U.S. Automotive Production

U.S. Auto Production Slows Heading into 2025

In January 2025, U.S. auto production amounted to 95,800 unit, a decline of 22% year-over-year.

Michigan Vehicle Production

Michigan Vehicle Production Increased in February 

Michigan motor vehicle production decreased in January to 141,307 units before rebounding in February to 158,980 total units. The January production was 10.4 percent lower than December s output, while February s production increased 12.5 percent and finished 0.5 percent higher than the level in February 2024. Nationally, motor vehicle production increased in January (780,688 total units) and February (872,678 total units), but remained 65,620 units below the 938,298 total units from February a year ago.  Michigan produced 18% of the total vehicle production in the U.S. in February 2025.

Automotive Manufacturing Employment

Vehicle Manufacturing Employment Up 4.5% in February

Michigan’s automotive manufacturing employment totaled 164,400 in February 2025, increasing almost 5% compared to the previous month.